Great Deal Alert
Last week I sent out a great deal alert for a 5 property portfolio. What I didn’t mention in that great deal alert and should have is that there was one particular property that stood out amongst all the rest, which was the 37 Unit building in West Adams.
This one stands out not only amongst these 5 properties in the portfolio but also amongst almost all other multi-family properties in L.A. because of its combination of attributes as follows:
a) Amazing cap rate/ return on investment. If you put down 30% ($1.5 million) your cash on cash return on day one, before you do anything to add value, is $13,000/mo!
b) it has been recently very thoroughly renovated so your monthly maintenance and repair budget is going to be very low
c) It is in a great location – West Adams
d) the average rents are in a range of affordability where it will be very easy to keep it fully occupied (it is 100% occupied right now.) It will be a very low vacancy rate.
e) lastly there is an opportunity to add value by building 9 ADUs on the premises.
OK, there you go. For those who have the means or maybe can partner with someone who does, this is a ‘buy!’ Call me if you want help in acquiring it.
